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"To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul
by logicchains 13y ago
"To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble."
- Paul Krugman, 2002
He doesn't always give the best advice...
- 21echoes 13y agoi don't think you could possibly read that quote and think that he was advising that there be a housing bubble...
- gte910h 13y agoIt did work, it killed the recession. Had there not been CDO's threatening to take down the world economy, the credit drying up in 2008 would have been far less severe. That said, I believe he's describing, not advising